FINANCING YOUR FIRST HOME

At First Home, we understand that purchasing a property to live in is probably the most valuable item that you will buy and unless you are fortunate enough to afford the whole purchase price, you will need to borrow money in order to buy your Home For Life.

First Home is here to help you understand and overcome some of the challenges of making the financial arrangements to help you invest in your new home.

Importantly, we have relationships with a number of banks and these financial institutions have visited our projects and have assessed the requirements that allow them to loan against your new property.

The Mortgage

Most buyers will need to arrange a long-term loan in the form of a mortgage, which can be obtained through the major local banks. The banks charge an interest on the loan, together with the sum borrowed (the principal), and this is repaid of over a period of time, up to 30 years. Interest rates vary as do the conditions that the bank requires you to fulfill in order to have the loan approved. A mortgage is a long-term commitment over a number of years.

How Much Can You Borrow

There are many factors that will influence the amount of money that you are able to borrow. It will come down to personal circumstances, the home that you wish to buy and what is called your disposable income and credit history.

To apply for the loan, you must, in the first instance, have an established bank account showing regular deposits over a period of at least 6 months to demonstrate that you are able to meet the loan requirements.

In some circumstances, if you have made arrangements and have been paying First Home an amount equal to the loan repayment that you would otherwise pay to the bank, the bank may view these payments during the construction period as evidence that you are able to satisfy the loan repayment criteria.

The approval process for applying for a loan will involve asking some in-depth questions and will usually take less than one month before a decision is given.

Deposits on Your Property

To secure your property First Home will take a Reservation Deposit. This will allow you to reserve your home for an agreed period of time while the loan is being approved. Once the loan has been approved, we will hold the property for completion and transfer. If your loan is not approved within the period stated, the property is released back onto the market for sale.

Start the Loan Application with First Home Now

It will take some time to collate the information that the bank will need to begin the loan review process and then a further few weeks to confirm the loan.

It is really important that you start the process early and that you have a clear idea on your financial ability to invest in your new home.

As soon as you are ready, we can help support you with the introduction to the banks and the application process.